Macroeconomist Luke Gromen has suggested that the US would benefit from adopting Bitcoin (BTC) rather than viewing the asset as a threat.
Gromine noted that adopting Bitcoin as a sovereign asset could give the United States an additional advantage and create an economic boom while providing an advantage over global competitors such as China and Russia. He said During Natalie Brunel’s podcast appearance on September 14th.
According to Gromin, bitcoin could be an option for the United States, especially if China and Russia opt to hoard gold, a scenario that would translate into an ‘explosion’ in the bond market. However, the macroeconomist noted that at the moment, US policy makers consider Bitcoin a threat to the dollar.
“Bitcoin could be a sovereign asset for the US, and it really could be a huge positive asset for the US.” <...> I think in the end the forces associated with the financial side of the United States consider it a threat, it must be. It depends on how you use it. If we go out and say whatever is good for Russia and China that you want to hoard gold, we will settle trade in bitcoins. Like the boom, it completely blows up the bond market. <…> We will have an economic boom,” he said.
Bitcoin Threat to the Dollar
Meanwhile, Gromin acknowledged that Bitcoin’s growth is threatening the dollar but ruled out the possibility of replacing the asset with it. In this line, he warned that Bitcoin’s growth should not be viewed as a bubble.
“It’s not a bubble, it’s telling you what’s going on. It’s been a very good indicator of the ups and downs of liquidity and so I think it’s a threat. I don’t know it necessarily needs to replace the dollar. I don’t think that would be.”
Government Threat to Bitcoin
Moreover, Gromin noted that Bitcoin faces a constant risk of being negatively affected by government policies. He noted that while the government may crack down on Bitcoin, the chances of the asset being broken are low, citing the Chinese government’s push to ban the major cryptocurrency.
The macroeconomist’s suggestion comes when the United States discusses the regulation of cryptocurrency. In this line, the White House released the first-ever cryptocurrency framework calling for regulation of digital assets.
Watch the full interview below:
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